CRK  ComStocks Resources Inc.

Exchange

NYSE

Sector

Energy

Industry

Oil & Gas Production

Market Cap.

67.79M

Vuru Grade

13.00/100

Current Price

$4.38
-0.02 (-0.45%)

Company Metrics

  • P/E 16.13
  • P/S 0.33
  • P/B 0.2877
  • EPS -9.39
  • Cash ROIC -11.52%
  • Cash Ratio 0.72
  • Dividend 0.00 / 0.00 %
  • Avg. Vol. 196,592.00
  • Shares 11.73M
  • Market Cap. 67.79M

Company Description

Comstock Resources, Inc. engages in the acquisition, development, production, and exploration of oil and natural gas properties in the United States. It has onshore operations primarily in the East Texas/North Louisiana and South Texas regions, as well as Mississippi, New Mexico, Kentucky, and the Mid-Continent regions. As of December 31, 2009, the company owned interests in 1,641 producing oil an... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Comstock Resources, Inc. Announces Third Quarter 2017 Earnings Date and ...
Nasdaq - Oct 11, 2017
FRISCO, TEXAS,October 11, 2017 --Comstock Resources, Inc. (NYSE:CRK) announces its plan to release third quarter 2017 results on November 6, 2017 before the market opens and host its quarterly conference call at 10:00 a.m.
Comstock Resources, Inc. (CRK) Expected to Post Quarterly Sales of $64.26 Million - StockNewsTimes
Analysts Shared Their Read on 2 Stocks: Comstock Resources, Inc. (CRK), Gerdau ...
Post Analyst - 18 hours ago
The opening price for Comstock Resources, Inc. (NYSE:CRK) was $4.54 and the volume amounted to 0.22 million shares which compares with the average volume of 0.2 million shares.
Comstock Resources, Inc. (CRK) Bonds Rise 1.8% During Trading - Week Herald
Next Weeks Broker Price Targets For Comstock Resources, Inc. (NYSE:CRK) - Fiscal Standard
Comstock Resources (CRK) Q1 2017 Results - Earnings Call Transcript
Seeking Alpha - May 8, 2017
Good day, ladies and gentlemen, and welcome to the Comstock Resources, Inc. Q1 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode, later we will conduct a question-and-answer session and instructions will follow at ...
Haynesville-Focused Comstock's NatGas Production Climbed During Q1 - Natural Gas Intelligence
Comstock Resources, Inc. Reports Second Quarter 2017 Financial and Operating ...
Nasdaq - Aug 7, 2017
Comstock Resources, Inc. is an independent energy company based in Frisco, Texas and is engaged in oil and gas acquisitions, exploration and development primarily in Texas and Louisiana.
Comstock Resources' (CRK) CEO Miles Allison on Q2 2017 Results - Earnings Call ... - Seeking Alpha
Comstock Resources Expands Haynesville Shale JV With Bossier Wells
Oil and Gas Investor - Oct 11, 2017
Comstock Resources Inc. (NYSE: CRK) said Oct. 11 it expanded its Haynesville Shale joint venture (JV) with USG Properties Haynesville LLC, a subsidiary of NextEra Energy Inc. In January 2017, Comstock formed the JV with USG to jointly develop ...
Comstock Eyeing More Extended Laterals in Haynesville JV - Natural Gas Intelligence
Rack Up ~16.75% YTM With Comstock Resources, April 2019 Bonds
Seeking Alpha - Jun 9, 2017
This week, we focus on an exploration and production company in the oil and gas sector. Comstock Resources formerly focused on oil production.
M Allison Sells 11455 Shares, Reducing Stake In Comstock Resources, Inc. (CRK)
NY Stock News - Oct 19, 2017
Interest in Comstock Resources, Inc. (NYSE:CRK) has gathered pace in recent weeks as a result of the underlying changes in the state of insider activity.
Breaking Down: Comstock Resources Inc (NYSE:CRK) Stock Drop Below Support ... - CML News
Comstock Resources, Inc. (CRK) Debt Trading 1.8% Higher - Dispatch Tribunal
Analysts Expect Comstock Resources, Inc. (CRK) to Post -$1.52 EPS
Dispatch Tribunal - Oct 17, 2017
Comstock Resources logo Equities analysts forecast that Comstock Resources, Inc. (NYSE:CRK) will announce earnings of ($1.52) per share for the current fiscal quarter, Zacks reports.
Can Comstock Resources, Inc. (NYSE:CRK) Provide Ample Returns for Investors? - JCTY News
Forget What Wall Street Says: Iteris, Inc. (ITI), Comstock Resources, Inc. (CRK)
Post Analyst - Oct 12, 2017
Iteris, Inc. (NASDAQ:ITI) recent rally took place on significantly more volume which surged nearly 0.24 million contracts on 11-Oct-17 versus its daily average of 0.15 million.
The Long Case For Comstock Resources, Inc. (CRK)
StockNewsGazette - Oct 5, 2017
Comstock Resources, Inc. (NYSE:CRK) is one of the active stocks and its unusual movement is raising eyebrows among traders.
Comstock Resources, Inc. (NYSE:CRK) Experiences Lighter than Average Trading ... - HugoPress
Comstock Resources, Inc. (NYSE:CRK) Signals Intraday Volatility – Down by 8.91% - First News 24
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CRK to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CRK's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$4.38 Current Price

$-67.66 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$-20.32 Book Price

Overvalued by 564.02%


Very Poor Cash Return on Invested Capital over the past 5 years

CRK has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CRK has lost $11.52 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -325.88M -160.97M -233.80M -131.64M -81.15M
divided by
Invested Capital 2.41B 1.94B 2.11B 966.12M 732.26M
Cash ROIC -13.51% -8.29% -11.08% -13.63% -11.08%

Very Poor Return on Equity over the past 5 years

CRK has shown an inability to deliver results for shareholders. This could be due to poor management, CRK operating in a highly competitive industry, or having a weak business in general.

CRK has generated a $2.59 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -100.06M 41.03M -57.11M -1.05B -135.13M
divided by
Stockholders' Equity 933.53M 952.01M 870.27M -171.26M -271.27M
Return on Equity -10.72% 4.31% -6.56% - -

Poor Business Performance over the past 10 years

CRK's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

CRK has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow -296.74M 272.14M -173.73M -225.74M -720.60M -325.88M -160.97M -233.80M -131.64M -81.15M

Very Weak Balance Sheet

CRK is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of CRK's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 24.41M 55.15M 186.45M 86.37M 56.10M 16.78M 2.97M 2.07M 134.01M 65.90M
Current Assets 124.51M 130.03M 273.39M 135.73M 113.09M 77.15M 57.13M 61.22M 156.24M 90.17M
Total Assets 2.35B 1.58B 1.86B 1.96B 2.64B 2.57B 2.14B 2.27B 1.20B 889.87M
Current Liabilities 130.80M 114.46M 94.77M 155.06M 187.21M 139.06M 195.00M 162.17M 95.72M 91.71M
Total Liabilities 1.58B 515.81M 792.85M 895.68M 1.60B 1.63B 1.19B 1.40B 1.37B 1.16B
Stockholder' Equity 771.64M 1.06B 1.07B 1.07B 1.04B 933.53M 952.01M 870.27M -171.26M -271.27M
Current Ratio 0.95 1.14 2.88 0.88 0.60 0.55 0.29 0.38 1.63 0.98
TL-to-TA 0.67 0.33 0.43 0.46 0.61 0.64 0.56 0.62 1.14 1.30

Low or No Reinvestment of Profits over the past 10 years

CRK has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to CRK operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 361.94M 613.91M 577.44M 557.85M 524.38M 424.32M 447.35M 366.41M -680.70M -815.83M
Retained Earnings Growth - 69.61% -5.94% -3.39% -6.00% -19.08% 5.43% -18.09% -285.78% -19.85%

Erratic Net Profit Margins over the past 10 years

CRK has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 68.90M 251.96M -36.47M -19.59M -33.47M -100.06M 41.03M -57.11M -1.05B -135.13M
divided by
Revenue 687.07M 590.31M 291.08M 349.14M 434.37M 456.19M 420.29M 555.23M 252.42M 175.71M
Net Profit Margin 10.03% 42.68% -12.53% -5.61% -7.71% -21.93% 9.76% -10.29% -414.82% -76.91%

Strong Pricing Power over the past 10 years

CRK has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$83.55 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 520.36M 503.58M 221.90M 321.99M 434.37M 414.86M 403.05M 518.54M 163.34M 107.25M
divided by
Revenue 687.07M 590.31M 291.08M 349.14M 434.37M 456.19M 420.29M 555.23M 252.42M 175.71M
Gross Margin 75.74% 85.31% 76.23% 92.22% 100.00% 90.94% 95.90% 93.39% 64.71% 61.04%

High Capital Intensity over the past 10 years

CRK spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

757.91% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 743.04M 418.73M 349.99M 537.40M 1.01B 588.11M 422.24M 634.79M 161.73M 57.42M
divided by
Net Income 68.90M 251.96M -36.47M -19.59M -33.47M -100.06M 41.03M -57.11M -1.05B -135.13M
Capital Expenditure Ratio 1,078.42% 166.19% -959.63% -2,743.80% -3,004.01% -587.76% 1,029.14% -1,111.50% -15.44% -42.49%

Inconsistent Dividend History over the past 10 years

CRK has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - 18.00M 23.83M - -
divided by
Shares Outstanding 44.41M 45.44M 45.00M 45.56M 46.00M 46.42M 46.55M 46.55M 46.11M 11.73M
Dividend Paid Per Share - - - - - - 0.39 0.51 - -
Price at Year End 34.78 46.59 41.43 25.01 15.30 15.01 17.90 6.75 1.73 9.85
Dividend Yield - - - - - - 2.16% 7.58% - -

History of Stock Buybacks over the past 10 years

CRK has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 44.41M 45.44M 45.00M 45.56M 46.00M 46.42M 46.55M 46.55M 46.11M 11.73M
Stock Bought Back - -2.28% 0.97% -1.22% -0.95% -0.92% -0.28% 0.01% 0.94% 293.15%
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